This paper presents an approach to solve the location problem in a global network with special focus on stocks and tax management. The methodology was applied successfully in large transnational agribusiness companies operating in Brazil. The results show that storage capacity constraints and inventory carrying costs, two components not usually included in location models, have a great correlation with the definition of the number of Distribution Centers. The methodology, from the installation of new facilities in different States or countries in MERCOSUR, improved the cash flow as much as US$ 22 million and showed the negative effect of the ICMS legislation that drives to a logistics cost increase to improve the cash flow. It is demonstrated that the model must cover at least four echelons in the chain to solve the network problem of companies with credit of ICMS.
network design; inventory-location model; tax planning; ICMS; drawback